Stock Market Enthusiast

Spritzer - Target RM2.20 - Still Growing Strong

Publish date: Tue, 28 Nov 2023, 09:16 AM

Spritzer share price +5% this morning and become the top 10 gainers in Bursa. What happened? Let's check out

1. I already foresee good result 6 months ago. In May, there was heat wave and I predicted this will benefit Spritzer. This prediction came true today as the earnings for Spritzer gone up hit record high as announced yesterday.

My writing 6 months ago:

2. News about record high earnings, this part is from The Edge.

Spritzer’s 3Q net profit hit record high, up 49%, driven by tourism activities and hot weather. Spritzer Bhd’s net profit surged 48.5% to a record high of RM16.97 million in the third quarter ended Sept 30, 2023 (3QFY2023), from RM11.43 million a year ago, as the company sold more bottles of drinking water amid recovery in tourism activities plus hot weather.

The leap in quarterly net profit was bigger than in quarterly revenue, which grew 10.85% to RM132.56 million, from RM119.59 million a year ago.

Earnings per share expanded to 5.32 sen in 3QFY2023, from 3.63 sen in the year before, according to Spritzer’s bourse filing.

3. Still positive on Spritzer, it should worth RM2.20.

This is based on 15x PE on FY24 EPS of RM0.147. The 15x PE is at premium of +0.5 standard deviation valuation. It is also at about 20% discount to F&N PE.

What else am I looking at?

1. PBA


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